Consider the Long-Run Theory of Investment,saving,and Growth

question 105

Multiple Choice

Consider the long-run theory of investment,saving,and growth.In the long-run version of our macro model (with real GDP equal to Y*) ,the equilibrium interest rate is determined where

• A)aggregate demand equals aggregate expenditure.
• B)desired national saving equals desired investment.
• C)the nominal price level equals the real price level.
• D)desired consumption equals desired investment.
• E)desired saving equals desired consumption.

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Definitions:

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